According to reports from the Zhitong Finance APP, China Securities Co.,Ltd. released a Research Report stating that top automotive companies are intensively launching significant new vehicles. The combination of new vehicles and intelligent technology is catalyzing the overall vehicle market. The outlook is Bullish for the valuation reshaping of the vehicle and intelligent driving Industry Chain in 2025, with overall vehicle investment opportunities lying in the improved sales and profits after being empowered by intelligent technology. The component investment opportunities are based on the steady performance realization of Hardware companies in the 1-10 stage, the valuation increase of suppliers with new technologies and new business models in the 0-1 stage, along with potential bottlenecks in the supply chain.

The main viewpoints of China Securities Co.,Ltd. are as follows:

Top automotive companies are intensively launching significant new vehicles, and the combination of new vehicles and intelligent technology is catalyzing the overall vehicle market.

On March 6, Hongmeng Zhixing announced that the Wenjie M8 and M9 2025 models are now available for pre-order, with starting prices of 0.368 million and 478,000 yuan respectively. In just 36 hours, orders for these models exceeded 36,000 and 18,000 units, showcasing excellent performance and highlighting the potential for a hit product. This year is a large year for Huawei's new products, with new vehicles from the Wenjie, Zunjie, and Xiangjie brands expected to be launched in April, boosting sentiment in the Huawei Sector. On March 10, Leap motor is set to launch the first global model B10 equipped with the new LEAP 3.5 architecture, with a series of new vehicles being released recently, bringing continuous catalytic effects to the Sector. On February 10, BYD released its new Tian Shen Eye intelligent driving strategy.

On February 20, the Huawei Zunjie technology conference announced an all-active sensing Hardware solution and L3-ready Hardware configuration.

On March 3, Geely released the Qianli Haohan advanced intelligent driving solution, with H1 and H3 solutions featuring high-speed NOA functionality, and H5, H7, and H9 featuring city NOA functionality. These will successively be equipped in the new and upgraded Galaxy products. The year 2025 is expected to be a transformative year for intelligent driving within the Autos Asset sector in China, with the market expected to continue to Diffusion.

This week, UBTECH released the Walker S series robot, showcasing a collaborative training video at the ZEEKR 5G smart factory. During the Two Sessions, embodied intelligence was mentioned for the first time in the "Government Work Report." The attention in the robotics direction continues to focus on the Hardware Ontology Sector, including dexterous hands and Sensors, leading to a comprehensive Diffusion rebound in the market. The sector sentiment is high, with the market showing significant spread effects. In the short term, new entrants in the industry, low-positioned stocks, and those with expectation gaps perform relatively well, while previously appreciated blue-chip stocks may be undergoing a phase of expectation consolidation. We maintain a Bullish stance, with Q2 2025 or around mid-year expected to become a critical node for Industry Chain tendering. Whether related symbols can achieve designated points or become verification windows for market trends may lead to a period of expectation consolidation to "eliminate the false and retain the true."

Risk Warning:

1. The industry prosperity is below expectations. The domestic economy is expected to recover in 2025, but the specific pace remains to be observed, and the demand in the autos industry may fluctuate accordingly; a slowdown in consumer income growth or expected volatility will impact the effects of trade-in promotions. Insufficient demand in the passenger and freight markets will also restrict the scrappage and replacement ratio of Commercial Vehicles, ultimately affecting the recovery process of the autos industry.

2. The outcomes of policy implementation are below expectations. The full implementation of trade-in and equipment updating policies for consumer goods still requires time, and policy promotion and information dissemination also need a certain period. Whether subsidy funds can continue to be allocated effectively and whether replacement demand can be smoothly released both require continued observation.

3. Export sales are below expectations. Exports are influenced by multiple factors including international circumstances, national policies, and Exchange Rates, leading to risks of fluctuation in overseas sales growth.

4. The competitive landscape of the industry is deteriorating. Under the trend of automotive electrification and intelligence, domestic automakers and parts suppliers are competing to establish their presence. As technology advances and new capacities are launched, supply factors may change, potentially intensifying industry competition. The market share and profitability of both vehicle manufacturers and parts companies may fluctuate.

5. Customer expansion and new project mass production progress are below expectations. In the trend of automotive electrification and intelligence, the existing supply chain pattern for vehicles and components is being reshaped. Parts companies that gain new customers and incremental new projects are expected to benefit, while some parts companies may have their market share affected.